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You may not think it possible especially these days, but some families either by choice or by the loss of a bread-winners job, live on one income. In reality a family living on one income can be more financially stable than one living on two. The reason is if one income is lost due to the loss of a job the two income family would be in trouble, or at least need to make major adjustments until a new job was found. Most two income families live within those means, but have become accustomed to that two income lifestyle and need that income to cover their basic needs like mortgage, loans, and credit cards. A one income family has already made those adjustments. Regardless, the first step is creating and strictly sticking with a budget.

Where things really get interesting is when you have two incomes and continue with two incomes, but budget yourself to live in one. This takes a lot of planning and potentially a lot of cuts, but that’s when you really begin saving and paying off major debts like mortgages. For most people once you have paid off your mortgage, the rest is very manageable.